Forex Daily Forecast, Analysis and Prediction

The USD/MXN is essentially trading within a price realm it occupied on the 16th of September, the day before the U.S Federal Reserve’s interest rate decision which caused a momentary storm a week ago.

Nvidia is looking a little softer during the trading session here on Tuesday after an explosive Monday. It was announced on Monday that Nvidia was going to purchase a huge portion of OpenAI investing $100 billion in order to expand its footprint across AI. And of course, people got excited. The market shot straight up in the air and slammed right into the $184 level, which had been a previous high. So the question is, can we break above $184? I really don't see anything on this chart that tells me we can't. Although purists would perhaps say this is an inside candle. It’s a Bearish Harami. I don't know about that. That doesn't typically end up being a very reliable signal anyways.

Ethereum has been fairly quiet during the trading session here on Tuesday as we hang around the 50 day EMA. The 50 day EMA of course is an indicator that a lot of people will be paying attention to. But I think what's even more important is the $4,000 level just below. The $4,000 level is a large round, psychologically significant figure. And of course, it will attract a lot of attention in general. If we turn around and break above the 50 day EMA, then it's likely that the market could go looking at the $4,500 level, possibly even the $4,800 level.

The light sweet crude oil market initially pulled back just a bit to test the $62 level, a level that's been important for several weeks. If the market were to break down below there, then we could open up the possibility of a move all the way down to the $60 level. But I think right now we're basically in a range of support underneath that could continue to offer a floor in the markets at the moment.

Bitcoin is trying to find a little bit of strength and support in this general vicinity of $113,000. And the market breaking down the way it has only to turn around and form a bit of a hammer does suggest that perhaps we have a real shot at bouncing here. The 50 day EMA, of course, is just above.

The Aussie dollar has gone back and forth during the early hours here on Tuesday. As we are trying to find a certain amount of momentum to eventually go higher. All things being equal. This is a market that will be very sensitive to risk appetite. After all, the Australian dollar is a commodity currency and it's also a currency that's very sensitive to Asia, which of course is sensitive to overall growth.

The US dollar initially rallied against the Canadian dollar during the early hours on Tuesday, but we have seen the market turn around and show signs of hesitation. Whether or not that continues to be the case remains to be seen, but ultimately this is a situation where we find ourselves in a fairly tight range that has been well-defined for several weeks.

During the trading session on Tuesday, we have seen the US dollar go back and forth in a fairly tight range against the Swiss franc. It is worth noting that the 0.79 level is offering significant support, and we do find ourselves still above that level. If we were to break down below that level, it would be a clear signal that the US dollar is going to go lower against the Swiss franc. That being said, the US dollar is on its back foot against multiple currencies at the moment, but the Swiss franc is a little bit different than many others.

The US dollar has gone back and forth during the course of the trading session here on Tuesday as we are hanging around the 200 Day EMA, but perhaps more importantly, we find ourselves in the middle of an overall consolidation range that has been like a pair of brick walls since the beginning of August.

The euro initially dipped against the Japanese yen during the trading session on Tuesday but then turned around to show signs of life. The ¥175 level is an area that could offer a bit of resistance, and it does look like we are trying to get above it. If we can break the ¥175 level, then the market is likely to go looking to the ¥175.50 level. Short-term pullbacks I think make a nice buying opportunity as we have just broken above a massive ascending triangle.

The British pound initially pulled back just a touch during the early hours on Tuesday but has seen enough support to turn things around and show signs of strength. Furthermore, it’s probably worth noting that the 50 Day EMA sits right there as well at the bottom of the candlestick, and therefore a lot of people will be looking at this as a potential technical bounce. Ultimately, the market could go looking to the 1.36 level above, which is a large, round, psychologically significant figure. It is also an area where we had seen a lot of trouble previously, and therefore if we were to break above it, it would obviously signify something serious.

The AUD/USD exchange rate was little changed on Wednesday as traders focused on next week's Reserve Bank of Australia (RBA) interest rate decision and key statements from the Federal Reserve. It was trading at 0.6600, down from last week’s high of 0.6706.

The GBP/USD pair was flat on Wednesday morning as traders continued to reflect on last week’s Federal Reserve and Bank of England’s interest rates decision. It was trading at 1.3517, a few points above last week’s low of 1.3455.

The EUR/USD exchange rate held steady on Monday after the flash manufacturing and services PMI numbers from Europe and the United States and after a neutral statement from Jerome Powell. It was trading at 1.1815, a few points above this week's low of 1.1728.

The BTC/USD pair remained under pressure this week, continuing a downtrend that started last week when it peaked at $117,995. Bitcoin dropped to $111,717, its lowest level since September 10. It remains 12% below the year-to-date high.